Finance 0

Gold Stays Tight Despite Helpful Plights

By Kurt Osterberg · On April 8, 2018

Four fast figures facts:

As depicted above in the Scoreboard through these first 14 weeks of 2018, Gold’s weekly closes have been tightly arrayed between 1314 and 1349. That’s all: a range of 35 points, (or +2.7% from low-to-high). Thus price sits tight despite so many plights from tariffs and thievery to a stock market ever so shivery.

The S&P 500 this year has twice closed weeks in the 2800s, seven times in the 2700s, four times in the 2600s and once in the 2500s, covering a weekly closing range of 284 points, (or -9.9% from high-to-low).

Nearly nine years back on 05 May 2009 both Gold and the S&P settled at the same price of 904; today, the S&P (2604) is priced twofold that of Gold (1337) … but by this year’s weekly closings ranges, the S&P’s points volatility is eight times (284/35) that for Gold. “Live by the volatility, …”

Silver in settling the week yesterday (Friday) at 16.365 has now been fully-contained in the 16s for 43 consecutive trading days; moreover the Gold/Silver ratio remains above 80x.

What’s it all mean?

The once Great American Savings Account on occasion reminds us it is not always that which it seems: the S&P rightly “corrected” by better than 50% in the years 2000-2002 and again in 2007-2009. Now it is anew losing its shine, although perhaps by not as much this time; we’ll again review at the -25% line (S&P 2154). Meanwhile Gold, the over-arching savings account for all time, quietly sits with a nod and a wink to Silver for it to lead out on the next precious metals climb.

But does Gold climb from here, or is the end of this weekly parabolic Long trend near? For our doting dot counters out there, the present ascent of blue dots numbers 13 weeks: that’s but half the longest Long run millennium-to-date of 26 weeks (June-December in 2005), which itself is one of five mutually-exclusive parabolic Long runs of 20 or more weeks since 2001. To be sure, as we turn to Gold’s weekly bars, the tight range year-to-date stands stark: quite zany it is given all the other markets’ disruptions over this plight and that. But we’ll take the graphic’s rising dashed trendline versus being stuck within the purple bounds of The Box (1280-1240) every time; (and, per a valued reader’s recommendation, we’ve added to the stats the Gold/Silver ratio when +80x):